Intel reports deepening losses. New CEO signals job cuts will continue
Intel’s new chief executive, looking to shore up finances and regain lost ground, announced Thursday that job reductions will continue and hybrid workers will be called back into the office for an additional day each week.
CEO Lip-Bu Tan released a letter to employees Thursday describing the urgency of Intel’s challenges and detailing plans to remove “unnecessary bureaucracy” from the organization.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” Tan wrote in the letter.
He also said that the company planned to require hybrid employees to spend four days in the office each week, beginning Sept. 1, up from three.
An Intel spokesperson said she did not have any detail on how the changes would affect the Folsom campus.
The same day, the company reported an $821 million loss for the first quarter, down from a $381 million loss during the same period last year, and leadership told analysts that tariffs had injected uncertainty into their outlook for the year.
The Santa Clara-based company has cut jobs steadily at its Folsom campus over the course of years. In 2023, the company cut nearly 790 positions there.
In August of 2024, having fallen behind its competitors in the chipmaking industry, Intel announced a companywide cost-savings plan that included cutting 15% of its workforce by the end of 2025. Since then, Intel notified the state of plans to cut 272 more jobs at the Folsom campus by mid-November, and another 58 by mid-April.
The company also confirmed last year that it planned to list the real estate of its Folsom campus for sale, and lease back a portion.
Tan, a former Intel board member who led the San Jose-based chip design company Cadence Design Systems from 2009 to 2021, took on Intel’s CEO role on March 18. Former Chief Executive Pat Gelsinger had retired in December, and for more than three months the company was led by two interim co-CEOs.
